Glossary of Logistics Terms

A

Agent
An organisation that provides services on behalf of a logistics company in a region outside the company's head office.
Open Top Container (Opentop)
A container type into which cargo that does not fit in a standard container, or cannot be loaded through the container door by forklift or similar equipment, can be loaded from above by crane or similar equipment.
ADR
The European Agreement concerning the International Carriage of Dangerous Goods by Road, a standard covering the rules for carrying flammable, combustible and explosive substances by road and specifying the documents required for vehicles and drivers.
Classes:
Class 1
Explosives
Class 2: Gases
Class 3: Flammable Liquids
Class 4.1: Flammable Solids
Class 4.2: Substances Liable to Spontaneous Combustion
Class 4.3: Substances Which Emit Flammable Gases in Contact with Water
Class 5.1: Oxidising Substances
Class 5.2: Organic Peroxides
Class 6.1: Toxic Substances
Class 6.2: Infectious Substances
Class 7: Radioactive Material
Class 8: Corrosive (Acidic) Substances
Class 9: Miscellaneous Dangerous Substances
Payment Under Letter of Credit (L/C)
A conditional undertaking issued by a bank at the buyer's request, stating that payment will be made to a seller against presentation of documents relating to the goods or services, as specified in detail by the buyer.
Transshipment
The process of unloading cargo that has arrived at a destination on one vehicle and loading it, without special processing, onto another vehicle for onward shipment to another destination within a short time.
Active Stack
A stack of goods that is being worked on, with materials added or removed as required.
Packaging
A container made of metal, plastic, wood or similar materials that wraps and protects the cargo to be transported and carries information about the product inside.
Warehouse
A secured covered or open area where freight vehicles load, unload and transship goods.
Warehouse Delivery-Receipt Note (ATF)
A document issued for storage, transport and/or value-added services, signed and stamped when goods are received from or delivered to the service provider, supplier or customers, certifying that the goods have passed into the responsibility of the relevant party.
Main Route
The most suitable and most frequently used route between a shipment's origin and destination.
Master Air Waybill (MAWB)
Used in air transport for shipments from the actual shipper to the actual consignee.
Contract Warehouse
A warehouse in which the service provider carries out storage operations on behalf of the customer under a contract.
Bonded Warehouse
A type of warehouse close to customs facilities where goods subject to customs legislation are kept during customs procedures.
House Air Waybill (HAWB)
A shipping document issued by agents for air freight. It contains the shipping instructions, a description of the goods and the applicable freight charges.
Storage
A place where products or materials are stored and kept.
Laydays and Cancelling Clause (LayCan)
The range of days during which the vessel may remain at the port in question for loading or discharging.
ATA Carnet
A document, accepted as a declaration and serving in place of a guarantee, that allows the temporary admission of goods free of customs duties between contracting countries under an international import convention.
ATR (ATR Movement Certificate)
A document issued by the exporter in order to benefit from customs exemption when exporting goods in free circulation, under the Customs Union Agreement signed between Türkiye and the European Community.

B

BAF (Bunker Adjustment Factor)
The practice whereby container carriers periodically calculate vessel fuel costs in light of fluctuations in oil prices and pass on a surcharge to the basic freight rate accordingly.
Barcode
Combinations of bars and spaces of varying widths which, as part of automatic identification technology, can be read by an optical scanner and transferred to a computer as numbers, characters or a mixture of both.
Dwell Time
The time during which cargo is not physically moving.
Declared Value
The value of the goods as declared by the shipper.

C-Ç

CAF (Currency Adjustment Factor)
The practice of incorporating fluctuations in the US dollar into the freight rate charged for carrying cargo by ship.
CFR (Cost and Freight)
A delivery term under which the seller, bearing all costs and risks, brings the goods to the port of loading, carries out customs formalities, pays the freight and completes loading. From that point on, all costs and risks relating to the goods, other than freight, are borne by the buyer.
CIF (Cost, Insurance and Freight)
A delivery term under which the seller brings the goods to the port of loading, bearing the insurance premium, freight and loading costs and risks. By paying the insurance premium, the seller takes out marine cargo insurance appropriate to the type of goods shipped. Once the goods are loaded on board, costs other than freight and insurance premium, as well as risk, pass to the buyer.
CIP (Carriage and Insurance Paid To)
Under CIP delivery, the seller delivers the traded goods, with freight and insurance paid, to the carrier or person nominated and contracted by the seller to take them to the agreed destination at the previously agreed place, or procures goods already so delivered.
CMR Convention
A multinational road transport convention, used by the countries that have accepted the provisions of the international CMR Convention, which sets out the rights of the shipper, carrier and consignee in the event of loss of, damage to or delay of the goods carried.
CMR International Consignment Note
A document showing that the carriage is performed in accordance with the CMR provisions. It is issued by the shipper or logistics company in the name of the consignee.
ConRo Vessel
A vessel able to carry vehicles on the lower deck and containers on the upper deck.
CPT (Carriage Paid To)
Means that the seller delivers the goods with freight paid up to the place named after the delivery term. After delivering the goods in sound condition to its own carrier, the seller carries out export customs formalities and is obliged to forward the shipping information and documents to the buyer. On receiving this information, the buyer should insure the goods against damage. All damage and additional costs after the goods are handed over to the carrier are borne by the buyer.
Cross-Docking
The process of sorting products received from a supplier according to customer requirements and dispatching them without putting them into stock and without breaking down the transport unit.
Packing List
A list showing the quantity, number of packages, weight, dimensions and numbers of the items in a consignment, together with the consignee's details and address.

D

Distribution Network
A system defining the elements, such as warehouses, routes and points of sale, involved in moving products from dispatch points to delivery points.
Distribution Channel
The set of connection points in the flow of goods/services produced and/or offered by a business, from the business to the end user.
Distribution Centre
Logistics facilities where products received from suppliers are stored, handled, packaged and shipped in the period before distribution.
Tare
The empty weight of a vehicle or container.
Demurrage
Exceeding the allowed loading and unloading time, or failing to clear and unload waiting cargo from customs within the permitted period.
Warehousing
Receiving products/cargo from one or more points, keeping and protecting them for a certain period, and then preparing them for dispatch to the required destinations.
Desi (Volumetric Weight)
A value used in calculating freight charges, obtained by multiplying the three dimensions (width, length, height) in centimetres of loads such as packages, crates and cartons and dividing the result by 3,000.
Direct Shipment
Sending cargo to the customer without any intermediate storage.
Document
Any form such as an invoice, purchase order, etc.
Bulk Cargo
A type of loading in which the cargo is not contained in a transport unit that can be handled with equipment, so handling requires touching the cargo itself.
Fourth Party Logistics (4PL)
Companies that combine the resources, capabilities and technology of their own organisation with third-party logistics (3PL) providers to deliver comprehensive supply chain solutions to their customers.

E

Handling
A general term for all operations in logistics facilities such as relocating products, breaking down and rebuilding packages, changing container sizes, inspection, labelling and stretch wrapping.
Electronic Product Code
A code containing the code version, manufacturer information, product type and serial number, used for the instant, automatic and global identification and tracking of a product in the supply chain.
Commodity
The name given to all goods and products that are traded.
Inventory
The physical and/or financial list of all fixed assets and stock in a business.
ETA (Estimated Time of Arrival)
The estimated date of arrival.
Euro Pallet (EUR pallet)
Pallets with defined characteristics such as dimensions, quality, material type, moisture content and nails used that comply with European pallet standards, known as Euro Pallets. The standard number of the Euro Pallet is UIC 435-2V, and its dimensions are 80 cm x 120 cm.

F

Feeder Service
The collection or delivery of goods from large ocean-going vessels to smaller vessels or barges, or vice versa.
FIFO (First in First Out)
A rule used in warehousing and costing which provides that the first material placed into storage is the first to leave.
Fleet Management
The organised management of a logistics company's own vehicles, equipment, garages and infrastructure systems.
Physical Distribution
The physical transport of manufactured goods to consumers, together with their storage, stock control, packaging, information exchange and order processing.
Physical Count
The process of counting and recording all inventory in a warehouse or facility in an orderly manner, usually once or twice a year, by temporarily suspending inbound and outbound operations.
Flexitank
A single-use packaging solution that allows liquid products to be carried inside containers, trucks and railcars, offering much higher volume utilisation than drums and barrels; the liquid is discharged by pump and no cleaning is required.
Forklift
A forked vehicle used for handling operations such as loading, unloading, moving, placing and stacking in indoor and outdoor areas.
Refrigerated Transportation (Reefer)
The transport of fresh and frozen food at temperatures down to -26 degrees.
FTL (Full Truck Load)
Full truck load refers to shipments in which the truck's load capacity is fully used to carry a single consignment.

G

Gauge (Gabarit)
The dimensions defining the length, width and height of vehicles, laden or unladen, to ensure their safe travel on the road.
Shipper
The party requesting the transport of the goods.
Groupage
The carriage of loads from more than one shipper in a single vehicle or container.
Customs Declaration (Bill of Entry)
A written declaration submitted to the customs authorities stating the characteristics, dimensions and nature of goods to be imported, exported, transited or subjected to another procedure.
Customs Clearance Certificate
A customs document certifying that all legal requirements have been met and the vehicle may depart.
Customs Registration
The approval by customs of the customs declaration prepared by the exporting or importing company or its customs broker, submitted for customs approval so that the goods concerned can be imported.
Secure Area
An area set aside for the storage of special materials.

H

Rail Consignment Note
A transport document used in rail freight, issued subject to the "Convention concerning International Carriage of Goods by Rail" (Convention Internationale Concernant le Transport des Marchandises par Chemins de Fer), known as CIM.
Damage
All harm causing loss of value, such as deterioration and deformation, occurring during transport, storage, handling and similar operations.
Air Waybill
A non-negotiable transport document issued between the shipper and the air carrier.

I-İ

IATA (International Air Transport Association)
The organisation that oversees tariffs and authorisations for passenger and cargo transport in international air transport.
IMCO Charge
A surcharge levied by the shipowner for the carriage of dangerous goods.
IMO Document
A document used for the carriage of flammable, explosive and chemical cargo.
Intermodal Transportation
A type of transport in which more than one mode of transport is used together without the cargo inside the transport unit being handled.
Export
Trade in which goods are sent from the home country to another country.
Replenishment
An in-warehouse transfer carried out during storage to ensure the availability of materials in different packaging formats and/or storage locations.
Waybill
A document approved by the tax authorities, used when dispatching sold goods from one place to another, evidencing delivery of the goods.
Import
Trade in which goods are brought into the home country from another country.

J

Joint Rate
The rate applied from the first point of carriage to the next.
Just In Time Delivery System
A system for shipping and delivering materials at the required time and in the required quantity, from the required place to the required place, under the specified conditions.

K

K1 Authorisation Certificate
An authorisation certificate that individuals or legal entities carrying goods commercially between cities by road with one or more of their own vehicles must obtain from the Ministry of Transport, Maritime Affairs and Communications. A minimum capacity of 75 tonnes applies to companies and 25 tonnes to individuals.
Cabotage
The privilege a state grants to its own ports in respect of maritime trade.
Kanban
Information, documents, signals or electronic messages that ensure required materials are supplied at the time and in the quantity needed in Just-in-Time production/supply systems. It is a pull system in which a new batch at a stock point is ordered based on consumption of the previous batch.
Added Value
The value, functionality or benefit added or improved in relation to a company's total labour, depreciation, profit, taxes and liabilities.
Knocked Down (KD)
Disassembling cargo into parts for later reassembly in order to achieve lower-cost loading.
Code
A numeric or alphanumeric representation of text used to classify commonly used information.
Combined Transportation
The carriage of goods from origin to destination using at least two modes of transport (road, rail, sea and air).
Full Load (Complete)
The allocation of a vehicle or transport unit to a single shipper.
Consolidation
Achieving economies of scale by combining small loads into larger shipments.
Bill of Lading
A shipping instruction containing all details of the shipper and consignee, together with information such as the place and date of loading, place of delivery, type of goods, quantity, gross weight and terms of delivery.
Container
Reusable steel box structures built to international standards for carrying goods efficiently, safely and without damage within the transport system.
Pre-Declaration Inspection (Küşat)
The right of goods owners to examine, sample and weigh their goods before declaration in order to prepare their customs declarations.

L

L2 Document
A type of authorisation certificate that companies operating international logistics businesses must hold under the Road Transport Law.
LIFO (Last In First Out)
The principle that the last material in is the first out.
Logistics
All the processes a product goes through from the original manufacturer to the end consumer, such as transport, storage, customs clearance, packaging and distribution.
Low-bed Trailer
Semi-trailers used to carry loads that, under international and domestic road transport regulations, are outside the standards and too large, long, wide or heavy to be carried by ordinary trucks or tractor-trailers.

M-N

Return to Country of Origin
Sending imported goods back to the country of origin when they do not meet the required specifications.
Goods Receipt
The process of accepting goods arriving at the warehouse.
Manifest
A document prepared by the carrier and its agent listing the details of the cargo.
Inspection
The analysis and checking of goods at storage or customs points under the supervision of third parties.
Force Majeure
A contractual provision stating that the parties cannot be held liable for unforeseeable events (earthquake, flood, war, etc.).
Seal
A locking system fitted after the vehicle has cleared customs, showing that it has not been opened without authorisation until delivery.
Freight
The charge paid for a transport service.

O-Ö

Delivery Order
A payment order written so that a bill is paid to the person to whom it is endorsed on the reverse.
Summary Declaration
A document showing that goods to be exported or imported have arrived at customs.

P

Packing
All protective materials used so that a product can be transported without damage.
Palletising
Stacking cargo to be transported or stored on pallets.
Panel Van
A type of vehicle built to carry goods.
Partial Shipments (LTL)
A method of carrying loads from different customers on the same route in the same truck.

R

Routing
Determining the order and route by which a transport operation will proceed from origin to destinations.
Trailer
A road vehicle for carrying goods, towed by a tractor unit, built to suit the characteristics of the cargo it carries and able to be parked on its own wheels.
Tugboat
A motorised vessel that helps large ships manoeuvre quickly and safely in port areas.
R2 Document
A type of authorisation certificate that companies acting as international freight forwarders must hold under the Road Transport Law.

S-Ş

Free Zone
Areas where non-Union goods may be placed without being subject to any customs procedure or released for free circulation, provided they are not used or consumed other than as provided for in customs legislation; for the purposes of import duties and trade policy measures they are deemed to be outside the Customs Territory of Türkiye, and goods in free circulation placed there normally benefit from the advantages associated with exportation.
Packing Slip
An official document stating the name and quantity of the cargo in the vehicle, the freight charge and the number of the invoice issued.
Shipment
The process of dispatching goods from the warehouse after sorting requests by criteria such as dispatch date, destination, loading vehicle, route and quantity, so that they can be delivered to the required locations with the relevant official documents.
Salvage Value
The monetary value assigned by an insurance surveyor to damaged goods.
Direct Clearance (Supalan)
A situation, generally in road and sea transport, in which goods are cleared through customs while still on the vehicle carrying them.
Swap Body
The name for containers built too lightly to be stacked on top of one another or lifted from above by a stacker.

T

Delivery Note
An official document used to record formally every quantitative movement of all kinds of tangible assets in a business, such as merchandise, raw materials, scrap and fixed assets.
Supply Chain
The name given to the whole of the activities, including organisations, people and technology, involved in the movement from supplier to customer.
Supplier
A company that supplies goods and services.
Dangerous Goods
Material requiring special care during transport and storage because it poses a risk of harm to health, safety and other materials in its surroundings.
Lead Time
The time between placing a purchase order or production order for a product/service and the delivery of the order or completion of production.
Receipt of Goods
The process whereby an authorised company representative takes delivery of goods from the authorised personnel delivering them.
Certificate of Delivery
A document issued for storage, transport and/or value-added services, signed and stamped when goods are received from or delivered to the service provider, supplier or customers, certifying that the goods have passed into the responsibility of the relevant party.
THC (Terminal Handling Charges)
The handling charge at the port.
TIR Carnet
A customs transit document that allows goods to be carried under a single procedure from the customs office of departure to the customs office of destination. It comes in 4, 6, 14 and 20-page versions, according to the number of pages it contains.
Tonnage
The carrying capacity of a freight vehicle in tonnes.
Pallet Jack
Material handling equipment suited to low-level work, used in the warehouse for order picking, vehicle loading and unloading.

U-Ü

UBAK (ECMT)
Entered into force on 1 January 1974. In 2006, UBAK (ECMT) became the International Transport Forum (ITF). The UBAK permit is a permit used for transport between member countries, accompanied by a duly completed logbook, and allocated at the beginning of each year by the Ministry of Transport, Maritime Affairs and Communications to companies meeting certain conditions, within the quota granted to member countries by the Secretariat.
International Transport
Any kind of transport carried out by road, sea, rail and/or air from one country to another, either directly or in transit.
International Commercial Terms (Incoterms)
A set of rules introduced by the International Chamber of Commerce (ICC) to standardise the terms used in international trade.
Third Party Logistics (3PL)
Logistics companies specialising in and undertaking their customers' logistics activities (primarily transport and warehousing). The first party refers to the selling company, the second party to the buying company, and the third party to the company that undertakes certain services between the seller and the buyer.

V

Cash Against Documents (CAD)
A method of payment under which the documents are released to the importer in return for the importer's bank paying the export proceeds to the exporter's bank. With the payment documents received, the importer is entitled to clear the goods from customs. This method is also known as documentary collection.
Crane
A machine used to lift heavy loads and move them from one place to another.

Y

Cargo
The goods, products or items being transported.
Loading
The process of safely loading materials onto a vehicle such as a train, aircraft or truck for shipment.
Loading Area
The area, such as a pallet or platform, on which cargo is placed.

Z

Harmful Substance
A substance that may pose a risk to health, safety or of damage during storage and transport.
Endorsement (Policy Addendum)
A document issued to record changes occurring while an insurance policy is in force.

Get a Quote

The LINK between your products and your market!